We began the week with a false breakout then yesterday we got a very bearish double top outside reversal off the 200 DMA. It doesn't get any easier than that to call the top and we moved down on heavy volume. Very classic top. Today was also a classic dead cat bounce from short term oversold conditions. The bounce came on low volume. Commodities were pressured today. Copper was down and is in a bearish pattern. No bull there either. We went right up to the 8 DMA and fell back down. Pretty normal. At least the last couple of days the charts have been behaving normally and are easy to read. The pattern still remains bearish. Once again, 1225-1200 remains very solid support for the bulls. Short term traders should book short profits just above that level. Much below 1195 and it is down you go. Nothing about today should scare the bear. We will see tomorrow.
The bounce was a good time to dump longs or add shorts.
Tks Dox, Bought some shorts about midday and lost a little. Started a quarter position into nem and lost a little on that as well. Tried to buy more of epv but didn't some down far enough. Will wait on pullback to the $90.00 range to buy cvx. Dividend and eps should hit target. Gl and tks again for your analysis.
You should get your money back on your shorts. Probably tomorrow. I almost added more EPV at close but elected to leave well enough alone. I cut some longs so I guess now I am more short. I sold GDX. I guess I didn't have the stomach for the volatility. It is still in an uptrend along with Gold. Gold is a little smoother ride so I elected to go that route. I added more Gold on a pullback. As long as Gold is above 1700 then it is in a bullish uptrend. I might take a look at GDX again. It pulled back again today and I almost pulled the trigger on it again. I know you have some oil stocks. It is interesting Oil remains in a bullish uptrend. Not sure what to make of it.